C S JAYANANDAN Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) A residential house on a plot measuring one ground in Madras city is the subject-matter of the agreement in respect of which Form No. 37-I was filed. The agreed consideration was Rs. 15 lakhs. The transferor is a retired employee of the Railways and the transferee is engaged in business.

(2.) THE appropriate authority has made an order for compulsory purchase of the property on the ground that the plots near by had been sold at much higher prices ranging from Rs. 18.25 lakhs to Rs. 22 lakhs per ground. That view of the authority was based on two transactions under the agreement dated October 20, 1994. THE proposed purchaser under those agreements was a developer who had purchased the two plots for the purpose of using the plots, together for further development. No question of tenancy which would decrease the value of the property arises in those cases.

(3.) AS the impugned order has omitted to take into account some relevant facts, and has proceeded under a wrong assumption that the property acquired by the developer for carrying out substantial development by way of construction of buildings with several floors, can be compared with a small property, the impugned order is therefore set aside. The matter is remitted back to the authority for fresh disposal in accordance with law, and in the light of the observations made in this order. W. P.s are accordingly ordered. WMPs are closed.